Aug. 20 (Bloomberg) -- Corn fell from a three-week high as field samples taken on farms in South Dakota and Ohio bolstered prospects for a record harvest in the U.S., the world’s largest grower and exporter. Soybeans and wheat dropped.
Corn yields in South Dakota will more than double to an average of 161.75 bushels an acre from 74 during the drought of 2012, participants in the annual Professional Farmers of America Midwest Crop Tour said yesterday, after examining fields in the state. Inspections of farms in Ohio led to estimates of 171.6 bushels an acre, on average, up from 110.5 in 2012. The U.S. government has forecast a record harvest of 13.76 billion bushels, sending prices down 32 percent this year.
“If you’re telling me the yield is good in the best production region of the country, then that’s really not bullish,” Ken Smithmier, a grains analyst at the Hightower Report in Chicago, said in a telephone interview. “I don’t see anything at the moment that says we need to bust out of this bearish trend and move higher.”
Corn futures for December delivery dropped 2.1 percent to settle at $4.755 a bushel at 1:15 p.m. on the Chicago Board of Trade, after touching $4.8675, the highest since July 24. Prices yesterday rallied 4.7 percent on concern that crop conditions were eroding.
Soybean futures for November delivery fell 1 percent to $12.905 a bushel in Chicago. The price is down 8.4 percent in 2013. The U.S. Department of Agriculture on Aug. 12 forecast a production increase of 8 percent this year to 3.255 billion bushels.
Wheat futures for December delivery lost 1.1 percent to $6.46 a bushel on the CBOT. The grain has fallen 17 percent this year, partly on speculation global production would increase.
--With assistance from Jeff Wilson in Chicago and Jen Skerritt in Winnipeg. Editors: Thomas Galatola, Steve Stroth